1of 17 F A O P o l i c y L e a r n i n g P r o g r a m m e Module 3: Investment and Resource Mobilization Sector Wide Approaches in Agriculture and Rural Development
2of 17 Sector Wide Approaches in Agriculture and Rural Development By Michael Wales, Principal Advisor, TCID, Guy Evers, Senior Advisor, TCID, Melissa Brown, Economist, TCIS, and Alicia Fernandez (TCID), Investment Center Division, FAO, Rome, Italy of the FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS About EASYPol The EASYPol home page is available at: www.fao.org/easypol This presentation belongs to a set of modules which are part of the EASYPol Training Path Policy Learning Programme Module 3: Investment and Resource Mobilization, Session 6: Sector-wide approaches (SWAps) EASYPol has been developed and is maintained by the Agricultural Policy Support Service, Policy Assistance and Resource Mobilization Division, FAO.
3of 17 Introduction Definition of SWAp A SWAp is: a programme that supports a single sector policy & expenditure programme government leadership a common approach across the sector and it relies on national systems to disburse, account and report on use of all funds Programme-based approach: more general
4of 17 Objectives After reading this module, you should know about [the main approaches to]: Broaden government ownership of sector policy, strategy and spending Improve coordination of all stakeholders Increase coherence sector policy, spending and results Minimise transaction costs of external financing
5of 17 Policy planning & financing SWAp is a policy planning & management approach, not just financing mechanism Can be financed by: General (direct) budget support G(D)BS Sectoral budget support Basket funding earmarked for sector
6of 17 Elements Nationally-owned policy & strategy MTEF reflect sector priorities Programming of resources activities-funds-work programmes-schedule for implementation Performance monitoring system enhance accountability Consultation mechanisms
7of 17 Agriculture Sector SWAps Uniquely complex Many private actors different capacities, interests, production systems, sub-sector markets Many public sector actors different ministries, agencies, functions Unclear role of the state governments and donors hold diverse views
8of 17 Study of A&RD SWAps Are SWAps in A&RD achieving their stated goals? Identify... critical lessons on development assistance in A&RD, and how to enhance the effectiveness of aid and contribution of A&RD to long term growth and poverty reduction
9of 17 Trends Changing A&RD governance: changes in mandates of MoAs, challenges of coordination and coherence Complexity of A&RD sector: most activities in the private sector public expenditure is not the main source of financing Aid processes in A&RD: aid has fallen, greater focus on policymaking, institutional capacity strengthening and public financial management
10 of 17 Themes for study Improved aid management Enhanced sector policy coordination and planning Improved institutional capacity and government leadership Enhanced public expenditure, financial management and equitable service delivery Stronger private sector interface
11 of 17 Preliminary findings Improved aid management: limited concrete evidence Improved policy coordination and planning: to some extent Enhanced PFM: showing signs of improvement Improved institutional capacity: limited progress Enhanced private sector: no obvious signs of improvement
12 of 17 Initial messages Ownership: constrained by weaknesses in government leadership Decentralisation: how to make the SWAp consistent with decentralisation Aid H&A: GBS achieves greater H&A Policy & institutional coherence: extremely difficult - avoid complexity Performance: difficult to identify tangible results
13 of 17 Mozambique PROAGRI Innovative, bold and commendable design Objectives not operational or measurable No effective M&E hard to assess results Fiduciary pressure by donors to track all expenditures Trade-off between institutional strengthening and development impact
14 of 17 Conclusion: Lessons It is possible to revive weak institutions quickly Massive capacity building efforts needed for staff and incentives to keep them Jointly-supported donor operations enhances government ownership Improved PFM can be put in place and must be able to track expenditures
15 of 17 Further readings Anand S., 1983. Inequality and Poverty in Malaysia, Oxford University Press, London, UK.
16 of 17 Links to Module 3 : Sessions 1-8 FAO Policy learning programme Module 3: Investment and Resource Management Session 1: Investment in agriculture & rural development Session 2: Environment for private investment in agriculture & rural development Session 3: Sources and uses of financial resources Session 4: Strategies for increasing farm financing resources Session 5: Risk mitigation in agricultural investment Session 6: Sector-wide approaches (SWAps) Session 7: Socio-economic & livelihood analysis FAO Policy learning programme Capacity Building Programme on Policies and Strategies for Agricultural and Rural Development
17 of 17 T h a n k y o u!